On September 29, the Financial Stability Board (FSB) released a public consultation on proposals intended to achieve the cross-border recognition of resolution actions and remove impediments to the cross-border resolution. In particular, the consultative document proposes a set of policy measures including:
(1) Jurisdictions should consider including in their statutory cross-border recognition frameworks to facilitate effective cross-border resolution as required by the FSB Key Attributes of Effective Resolution Regimes for financial institutions; and
(2) Contractual approaches to cross-border recognition that focus on stays on early termination and cross-default rights in financial contracts, and the “bail-in” of debt instruments that are governed by the laws of a jurisdiction other than that of the issuing entity.
Click here for the FSB Press Release
Click here or see attached for the Consultation Document.